APA Group to invest $1,015 million in Queensland power plant

APA Group has finalized agreements with CS Energy to develop and majority own the Brigalow Peaking Power Plant in Queensland, Australia. Under the deal, APA will hold an 80% ownership stake in the 400MW gas power station, located near the Kogan Creek Power Station. CS Energy will retain a 20% interest and will be responsible for the plant's operation and maintenance.

The total project cost is estimated at $1,269 million, with APA contributing approximately $1,015 million from its existing balance sheet. The facility is designed to provide fast-start dispatchable energy to complement renewable sources, with the capacity to power over 150,000 homes. The project also includes the construction of a new gas lateral and storage pipeline to connect the plant to APA’s Roma to Brisbane Pipeline.

The investment is supported by a 25-year inflation-linked hedge offtake agreement with CS Energy. The project is targeted for completion in early 2029, with GE Vernova supplying the gas turbines.